Russian grain exporters have announced a new policy to sell directly to sovereign buyers, impacting international trade dynamics. Key points include:
Direct Sales: The Grain Exporters Union stated that deliveries will now be made exclusively to government agencies and sovereign buyers. This decision aims to streamline exports and address concerns over excessive low-priced shipments by unspecified exporters.
Export Forecasts: Russia anticipates a grain harvest of 130 million tons in 2024, a decrease from previous estimates of 132 million tons, and significantly lower than the 148 million tons harvested in 2023.
Price Regulations: The Agriculture Ministry has advised exporters not to use foreign intermediaries and to set a minimum price of $250 per metric ton for Russian wheat.
Impact on International Traders: This policy will affect 13 countries, including major importers like Egypt, Saudi Arabia, and India. International trading houses that previously secured tenders and then purchased Russian grain may face challenges under the new rules.
Long-term Agreements Required: The union emphasized that foreign companies winning tenders will only be able to fulfill their obligations if they have long-term off-take agreements with Russian exporters.
Risks for Exporters: The shift may increase risks for exporters who relied on intermediaries for hedging their trades.
This strategic move by Russian grain exporters reflects a significant shift in their approach to international sales, likely impacting global grain markets.